SAT sets aside SEBI's order against Zee's Punit Goenka, allowed to retain key managerial position
In June this year, the capital markets regulator had barred Essel Group Chairman Subhash Chandra and Punit Goenka from being a director in some Zee Group companies
- Oct 30, 2023,
- Updated Oct 30, 2023 12:36 PM IST
The Securities Appellate Tribunal (SAT) on Monday allowed an appeal filed by Zee Entertainment CEO Punit Goenka to lift the Securities and Exchange Board of India's (SEBI) ban against Punit Goenka. Punit Goenka has been allowed to retain the key managerial position (KMP), news agency Reuters reported.
In June this year, the capital markets regulator had barred Essel Group Chairman Subhash Chandra and Punit Goenka from being a director in some Zee Group companies. These companies were Zee Entertainment Limited, Zee Media Corporation, Zee Media Corp, and Zee Aakash News.
SEBI had found in its investigation that the duo abused their position as directors of Zee Entertainment in 2019 by allegedly siphoning off funds for their own benefit. The SEBI was investigating allegations related to appropriation of certain fixed deposits of Zee Entertainment Enterprises by Yes Bank for squaring off loans of related entities of Essel Group.
According to the SEBI order, Chandra and Goenka cannot be directors in any entity that is formed after the merger.
In 2021, Zee Group had announced a merger of Zee with Sony's India business. The merger was aimed at bringing together over 70 TV channels, two video streaming services (Zee5 and SonyLIV) and two film studios (Zee Studios and Sony Pictures Films India).
The Zee-Sony merger was approved by the National Company Law Tribunal (NCLT) on August 10 this year, dismissing objections from Zee's lenders including IDBI Trusteeship, IDBI Bank, Axis Finance, JC Flowers Asset Reconstruction Co and Imax Corp. The merger was, however, delayed due to an interim order by SEBI which restrained Goenka from directorships of any listed companies.
SEBI chairperson Madhabi Puri Buch said in this order that Punit Goenka's conduct as ZEEL MD and CEO was found to be violative of the norms to prevent fraud. "His actions were in direct conflict with the interests of 96 per cent public shareholders of ZEEL, necessitating imposition of temporary restraint on him," Buch said at the time. Meanwhile, shares of Zee Entertainment are up 1.24 per cent to trade at Rs 252.20 apiece at the BSE and up 1.14 per cent to trade at Rs 252 at the NSE.
Also Read: SEBI bars ZEE's Subhash Chandra, Punit Goenka from holding directorial position
Also Read: Sony India- Zee Entertainment merger deal may close by November: Report
The Securities Appellate Tribunal (SAT) on Monday allowed an appeal filed by Zee Entertainment CEO Punit Goenka to lift the Securities and Exchange Board of India's (SEBI) ban against Punit Goenka. Punit Goenka has been allowed to retain the key managerial position (KMP), news agency Reuters reported.
In June this year, the capital markets regulator had barred Essel Group Chairman Subhash Chandra and Punit Goenka from being a director in some Zee Group companies. These companies were Zee Entertainment Limited, Zee Media Corporation, Zee Media Corp, and Zee Aakash News.
SEBI had found in its investigation that the duo abused their position as directors of Zee Entertainment in 2019 by allegedly siphoning off funds for their own benefit. The SEBI was investigating allegations related to appropriation of certain fixed deposits of Zee Entertainment Enterprises by Yes Bank for squaring off loans of related entities of Essel Group.
According to the SEBI order, Chandra and Goenka cannot be directors in any entity that is formed after the merger.
In 2021, Zee Group had announced a merger of Zee with Sony's India business. The merger was aimed at bringing together over 70 TV channels, two video streaming services (Zee5 and SonyLIV) and two film studios (Zee Studios and Sony Pictures Films India).
The Zee-Sony merger was approved by the National Company Law Tribunal (NCLT) on August 10 this year, dismissing objections from Zee's lenders including IDBI Trusteeship, IDBI Bank, Axis Finance, JC Flowers Asset Reconstruction Co and Imax Corp. The merger was, however, delayed due to an interim order by SEBI which restrained Goenka from directorships of any listed companies.
SEBI chairperson Madhabi Puri Buch said in this order that Punit Goenka's conduct as ZEEL MD and CEO was found to be violative of the norms to prevent fraud. "His actions were in direct conflict with the interests of 96 per cent public shareholders of ZEEL, necessitating imposition of temporary restraint on him," Buch said at the time. Meanwhile, shares of Zee Entertainment are up 1.24 per cent to trade at Rs 252.20 apiece at the BSE and up 1.14 per cent to trade at Rs 252 at the NSE.
Also Read: SEBI bars ZEE's Subhash Chandra, Punit Goenka from holding directorial position
Also Read: Sony India- Zee Entertainment merger deal may close by November: Report